Bank customers are protected, but not investors, says Biden
The Fed has announced a review into Silicon Valley Bank and a new "Bank Term Funding Program.”
On Monday, President Biden reassured Silicon Valley Bank and Signature Bank customers that their money is safe.
“All customers who had deposits in these banks can rest assured they’ll be protected and they’ll have access to their money as of today. That includes small businesses across the country that banked there and need to make payroll, pay their bills, and stay open for business,” said Biden.
The President emphasized that investors will not be protected, stating, “They knowingly took a risk and when the risk didn’t pay off, investors lose their money. That’s how capitalism works.”
At the same time, the Federal Reserve Board announced that Vice Chair for Supervision Michael S. Barr is leading a review of Silicon Valley Bank. The review is to be released by May 1.
The Fed also announced a new “Bank Term Funding Program.” It invokes an emergency authority that “makes additional funding available to banks pledging any collateral eligible for purchase by the Federal Reserve Banks.”
Sources (3)
- www.whitehouse.gov
- Remarks by President Biden on Maintaining a Resilient Banking System and Protecting our Historic Economic Recovery | The White House
- Federal Reserve on Twitter
- www.federalreserve.gov
- The Fed – Bank Term Funding Program
Media Coverage (33)
- Al Jazeera
- US guarantees Silicon Valley Bank deposits amid bank crisis fears
- Axios
- The aftermath of Silicon Valley Bank’s bailout
- Silicon Valley pulls back from bank failure abyss
- Silicon Valley Bank’s U.K. arm sold to HSBC
- U.S. regulators will protect all Silicon Valley depositors to stem fallout
- BBC News
- Newspaper headlines: Lineker ‘to return’ and Silicon Valley Bank collapse
- Silicon Valley Bank: Money in failed US bank is safe – US government
- Silicon Valley Bank: Offer made for UK arm of failed US lender
- CNN
- Is my money safe? How secure is the banking system? Your Silicon Valley Bank fallout questions, answered
- Biden emphasizes US banking system is safe after Silicon Valley Bank collapse
- Christian Science Monitor
- Silicon Valley Bank collapses, governments swift to protect deposits
- Fox News
- Head of risk assessment at Silicon Valley Bank invested in LGBTQ programs in months leading up to shutdown
- Reuters
- Silicon Valley Bank parent, CEO, CFO are sued by shareholders for fraud
- HSBC rescues British arm of stricken Silicon Valley Bank
- South China Morning Post
- Silicon Valley Bank collapse turns hopes for a ‘good harvest’ from combination of US capital and China tech into a nightmare
- Explainer |Why did Silicon Valley Bank fail, and what does it mean?
- HSBC swoops in as white knight for Silicon Valley Bank, buys collapsed lender’s UK unit for £1
- Silicon Valley Bank’s collapse likely to boost Chinese stocks by tempering US interest rate rises, brokerage says
- HKMA monitoring Silicon Valley Bank fallout as Hong Kong-listed firms’ exposure reaches US$194 million
- US moves to protect depositors, backstop banks in wake of Silicon Valley Bank collapse
- United Press International
- Days after Silicon Valley Bank fails, regulators close Signature Bank
- Treasury Secretary Yellen says no bailout for Silicon Valley Bank
- Wall Street Journal
- Were Banks Just Bailed Out by the Government?
- Silicon Valley Bank Fallout Shakes Confidence at Asian Startups
- Silicon Valley Firms Expect Changes in Financial Methods After SVB Disaster
- Silicon Valley Bank’s U.K. Arm to Be Bought by HSBC
- Silicon Valley Bank Bailout Relieves Pressure on Enterprise Technology
- The Silicon Valley Bank Bailout
- Companies With Deposits Trapped in Silicon Valley Bank
- Washington Post
- Silicon Valley is breathing a sigh of relief as they access bank accounts
- The political fallout from the Silicon Valley Bank mess
- Live updates ‘The banking system is safe,’ Biden says after failure of Silicon Valley Bank
- Silicon Valley Bank’s U.K. arm to be acquired by HSBC for just over $1